Barrett also said he would not support a financing plan for a new downtown sports arena that depended only on the city or county of Milwaukee for revenue.

While presenting on overall positive outlook for Milwaukee's growth and future, the mayor said the city is being squeezed by growing wage and benefit payments for police and firefighters, the collapse of the housing market and the number of foreclosed and vacant properties in the city.

"In light of all this, why would anyone think this is the time to lift residency as a condition of employment in the state budget? Why wage an attack on the principle of local control in the state budget? It is beyond me," Barrett said. "It is wrong for the fabric of our city. It is wrong for the fabric of our neighborhoods and it is very wrong for the city's fiscal health."

Gov. Scott Walker proposed lifting residency requirements in the budget he presented to lawmakers last week. Barrett called it "the very definition of big brother government," and asked state lawmakers to take the residency repeal out of the budget.

Barrett also called for transparency in the process of developing a new downtown arena to replace the aging Bradley Center as the home of the Milwaukee Bucks basketball team.

"The team belongs in Milwaukee. The team belongs in Wisconsin," Barrett said. "However, I cannot support a City of Milwaukee or Milwaukee County only financing plan. We need to have a regional plan because the Bradley Center is a regional and state asset just like Miller Park. Just like State Fair Park."

Barrett said the city is too dependent upon the property tax, and that any "serious dialogue" about a new sports and entertainment complex should also include discussion about how to fund police, firefighters, health services and infrastructure.

Barrett noted a report that said the city is financially well run, but said he would be asking local businesses, foundations, universities and the state to work with city government to "come up with a plan to provide a pathway to long-term financial stability."

Barrett also highlighted entrepreneurship, a downtown streetcar, fresh water research and new corporate investments.

Barrett said the group of investors who created Fund Milwaukee have helped connect capital and businesses, and have led to the growth of new local companies.

"Efforts like this fuel Milwaukee's future," Barrett said, thanking Fund Milwaukee investors. "What they are doing is giving back to our city and our people."

After recognizing small business investment and startups, Barrett cited a large corporate construction project downtown that he said "will bring a generational change to the city's skyline."

Northwestern Mutual is building a tower that will create hundreds of construction jobs. The mayor said it will be the largest construction project downtown since the U.S. Bank building was completed in the early 1970s.

"Milwaukee's 'Quiet Company' is making a very loud statement by increasing employment downtown," Barrett said. "Its expressed vision is the retention of all current jobs and an addition of 1,700 new positions."

Barrett also talked about the transformation of downtown, with some 20,000 residents living in more than 13,000 housing units. Many of the new housing units have been built in the last decade.

"Our city's future is tied to more people living, working and investing in Milwaukee," Barrett said.

The mayor said city residents will benefit from the proposed streetcar. Barrett's streetcar proposal has been controversial, with critics saying the streetcar is too costly and won't have ridership to support it.

"We already have the federal share for the streetcar in the bank," Barrett said. "The final engineering phase is about to start and will determine the exact route. And we're also beginning the formal utility coordination to reduce costs, as we do on all major public works projects."

Despite backing from the mayor and some aldermen, the streetcar project still could have trouble getting off the ground. The Wisconsin Public Service Commission "may very well disrupt and delay the streetcar," Barrett said.

The mayor also highlighted the city's efforts to become a leader in fresh water research.

"Milwaukee is reinventing itself through technology and innovation, and Milwaukee's International Water Council is the perfect example of that. Through partnerships, Milwaukee is uniquely positioning itself to help solve the world's fresh water crisis," Barrett said. "My goal is to increase the number of water industry related jobs."

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